http://news.yahoo.com/news?tmpl=story&u=/nm/20040820/wl_nm/iraq_dc_334<snip>
NAJAF, Iraq (Reuters) - Iraq (news - web sites)'s interim government said it had defused a Shi'ite rebellion in Najaf Friday without a shot being fired, but rebel militiamen denied police had seized the city's sacred Imam Ali Mosque from their control.
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Amid the extraordinary confusion over a two-week rebellion that has killed hundreds and driven world oil prices to record highs, the United States military said it could not confirm the government had won back the shrine peacefully.
A senior Interior Ministry spokesman said police entered the shrine and arrested hundreds of militiamen.
Any bloodless seizure of the mosque would be a major political victory for interim Iraqi Prime Minister Iyad Allawi, who since taking over from U.S. occupiers on June 28 has struggled to stem an insurgency and now a Shi'ite revolt in eight cities.
But soon after the seizure was announced, a senior Sadr aide said the statement was false.
"The shrine is in the control of the Mehdi Army," said Sheikh Ahmad al-Sheibani, a top militia commander. "The Mehdi Army will resist any attempt by the Iraqi police to control the shrine."